Australians warned of interest rate hike as survey reveals cost of living struggle

Threats of interest rate hikes are making Aussies fearful of spending, with over half saying they’d use a surprise gift card on groceries or bills.New research from Finder showed only one in five would use a suprise $500 windfall for discretionary purchases like nice dinners, new clothes or travel.The data is a bad sign ahead of an anticiapted interest rate hike next month as many mortgage holders prepare to cut spending even further just to get by.Taylor Blackburn is a personal finance specialist at Finder and said many Australians have shifted their priorities towards financial security.MORE: Inflation bombshell shows rate hikes backfiringTaylor Blackburn is a personal finance specialist at Finder and said Australians are priotiising financial security over discretionary spending. Picture: Supplied“A $500 reward isn’t being seen as spending money – it’s being seen as breathing room,” Mr Blackburn said.“When more than half of Australians would immediately put a windfall towards household bills, it’s clear that cost-of-living pressures are still shaping financial decisions,” he said.Many Aussies are worried an unexpected cost could derail their finances with 20 per cent of those su...